Decision details

Authorisation to write off uncollectable non-domestic rate liabilities totalling £108,626.76

Decision Maker: Cabinet Member for Finance

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes


To seek authorisation to write off uncollectable non domestic rates in the sum of £108,626.76.


That approval is granted to write off the uncollectable non-domestic rates in the sum of £108,626.76 as the debts have become uncollectable.

Reasons for the decision:

The debts, has detailed below, have become irrecoverable.




Debtor company:      Genus (UK) Ltd                                                                                                                                                                                £43,112.46

Debt address:           26/27 Isaac Newton Centre



NG31 6EE


This company proposed a Company Voluntary Arrangement (CVA) which was subsequently approved by the requisite 75% percent of its creditors. The effect of the CVA is to render this debt irrecoverable.




Debtor company:      Ashley Paul Pub Co Ltd                                                                                                                                                                 £30,285.24

Debt address:           The Black Horse

                                    Main Street



                                    PE6 9PB



This company commenced trading in December 2015. Payment of non-domestic rates was not immediately forthcoming and recovery action was subsequently commenced. This resulted in a liability order being obtained before Lincoln Magistrates’ Court on 16 May 2016. We instructed enforcement agents who collected payment in full. Recovery action was also instigated in respect of subsequent financial years and further liability orders were granted on 27 June 2016 and 19 July 2017. When payment arrangements were defaulted upon we again instructed enforcement agents. Unfortunately, the agents were unable to collect full payment or identify sufficient assets of the company to remove and sell. We therefore considered proceedings which would ultimately place the company into liquidation but this became unnecessary when it ceased to trade of its own volition in early April 2018. With no assets and no money to pay the debt it is considered to be irrecoverable.    




Debtor company:      New Era Italian & Continental Restaurant Ltd       


Debt address:           23 Westgate



                                    NG31 6LU


Initially, this company had a manageable non-domestic rate liability based upon a rateable value entitling it to receive Small Business Rate Relief. This liability was paid by direct debit without any apparent issues. Subsequent retrospective amendments by the Valuation Office Agency (going back to April 2017) saw the rateable value more than treble, which resulted in a substantial backdated liability. Whilst a liability order was obtained before Lincoln Magistrates’ Court on 21 March 2018, officers from the Revenues Team worked with the company directors to ensure the continuance of trade whilst they appealed the revised assessment. An interim payment arrangement was agreed in the meantime. The company directors decided not to pursue an appeal and instead they vacated the property and ceased to trade. With no assets and no money to pay the debt it is considered to be irrecoverable.    


Alternative options considered:

The Council’s financial regulations require individual debts over £25,000 to be approved by the Cabinet member. The debts referred to can no longer be recovered.


Publication date: 08/04/2019

Date of decision: 04/04/2019

Effective from: 13/04/2019

Accompanying Documents: